Related Guidelines and Policy Information can be found at:

Policy 11-B, Policies of the Regents:

CU System Administrative Policy Statement:

Salary adjustments for faculty are made annually. For instructors and tenure-track faculty, these adjustments generally take effect July 1 for that academic year. Recommendations for merit increases are to be determined by the department chair in consultation with department colleagues as defined by department rules and college/school guidelines.
Regental policy requires that each primary unit develop explicit statements for criteria for assessing annual merit. These statements must be in writing and must be available to faculty. New faculty members should be provided a copy of your unit's evaluation criteria as early in their first year of employment as is practical. The criteria for assessing annual merit adjustments are to include measures of each faculty member's contribution to the teaching, research/creative work, and service missions of the primary unit and the University. Effort in each of these areas is to be weighted according to the workload assignment for the individual faculty member. In the fall of each year, the Regents issue a Faculty Salary document that defines for each campus and unit the role that merit assessments will play in the salary adjustments for the coming year. In general, this document states that salary adjustments for the coming year are to be based primarily on assessment of merit, but recognizes market increments, special opportunity increments, and relative internal salary position (equity) as additional factors which may be considered.
With regards to salary equity, chairs are encouraged to analyze the salary distribution data provided to each department annually (these scatter plots provide a quick analysis of salary distributions within a unit, with women and faculty of color highlighted, and can be used to identify individuals who may or may not have a salary inequity relative to their peers. These of course, do not correct for differences in career merit). Chairs who believe that a salary inequity exists within their unit should refer to the section on salary equity later in this part.
Regent policies also require that primary units consider a faculty member's Professional Plan as part of its annual merit evaluation exercise. Professional plans are considered more commonly as a part of the Post-Tenure-Review process.
In order to moderate extreme variation in merit assessment year-to-year due to variable achievement beyond the faculty member's direct control, some units combine data from the year's annual evaluation with data from one or more previous years. Some colleges require multiple year averaging to be part of every unit's assessment procedure. Currently, two forms are used at the unit level as part of the merit assessment and salary adjustment process.
The first of these forms is titled Annual Merit Evaluation: Advice and Comments. This form is a confidential working document, and is used by the chair or assessment committee to provide advice to each faculty member regarding their professional performance. In addition, this form converts to a numeric or scaled rating the performance of that faculty member relative to his or her peers.
The second form is titled Faculty Performance Rating. This is a public document. This document summarizes the annual performance of the faculty member in each of the three workload areas. This performance rating is shared with the faculty member, who is asked to sign the form.  
In addition to a faculty member's evaluation, Regental policy requires that each faculty member also receive an annual performance rating. The performance rating system requires that each faculty member's performance be rated as outstanding, exceeding expectations, meeting expectations, or below expectations. The rated faculty member has the right to append a response to the rating if she or he so desires. A copy of this performance rating is placed in the faculty member's personnel file and is subject to disclosure under the Colorado Open Records Act.